JACKSONVILLE, Fla., Aug. 13 /PRNewswire-FirstCall/ -- Jacksonville Bancorp, Inc. (Nasdaq: JAXB), holding company for The Jacksonville Bank, reported the Company had a second quarter net loss of $992,000 compared to a net loss of $396,000 during the second quarter in 2009. On a per share basis, the net loss was $0.57 compared to a net loss of $0.23 for the same period in 2009. The loss for the quarter was driven primarily by additional provisions for loan losses, merger-related expenses, write-down of OREO values, and other related expenses on foreclosed property.
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Total assets increased $13.4 million from $438.8 million at December 31, 2009 to $452.2 million at June 30, 2010. The increase was driven primarily by growth in cash and federal funds sold of $17.5 million as a result of the success recognized from the deposit gathering campaign that began last fall offset somewhat by a net loan decrease of $10.2 million, or 2.7%. The decrease in net loans was driven primarily by a reduction in residential real estate loans of $3.1 million, or 3.2%, construction real estate loans of $1.7 million, or 5.3%, commercial real estate loans of $4.6 million, or 2.0%, and consumer loans of $781,000 or 20.0%, offset by an increase in commercial loans of $1.3 million, or 5.5%, and an increase in allowance for loan losses of $1.4 million, or 20.3%.
The Company's nonperforming assets at June 30, 2010 were $12.5 million compared to $12.8 million at December 31, 2009 and $11.1 million at March 31, 2010. Total delinquencies (loans past due 30 or more days) increased slightly to $10.1 million, or 2.6% of total loans, at June 30, 2010 compared to $9.8 million, or 2.5% of total loans, at March 31, 2010.
Jacksonville Bancorp, Inc. President Gilbert J. Pomar, III stated, "As property values continue to deteriorate and this challenging economic environment lingers, our focus continues to be the careful monitoring and swift reaction to potential problems in our loan portfolio. At the same time, we also see this as a time to be opportunistic and position ourselves for the future." The Company remains well capitalized with total risk-based capital, Tier 1 risk-based capital and Tier 1 leverage capital at 11.51%, 8.63% and 7.31%, respectively, at June 30, 2010.
Nonperforming assets decreased to $12.5 million, or 2.8% of total assets, compared to $15.2 million, or 3.5% of total assets, in the prior year.
June 30, |
|||||
2010 |
2009 |
||||
(Dollars in thousands) |
|||||
Nonaccruing loans |
$ 6,435 |
$ 14,560 |
|||
Loans past due over 90 days still on accrual |
-- |
-- |
|||
Total nonperforming loans |
6,435 |
14,560 |
|||
Foreclosed assets, net |
6,089 |
653 |
|||
Total nonperforming assets |
12,524 |
15,213 |
|||
Allowance for loan losses |
$ 8,248 |
$ 5,663 |
|||
Nonperforming loans and foreclosed assets as a |
2.77% |
3.48% |
|||
Nonperforming loans as a percent of gross loans |
1.68% |
3.73% |
|||
Loans past due 30-89 days, still accruing |
$ 8,539 |
$ 986 |
|||
The allowance for loan losses was 2.16% of total loans at June 30, 2010 compared to 1.45% for the comparable period in 2009 and 1.75% at December 31, 2009. Provision for loan loss expense was $1.9 million and $4.3 million for the three- and six-month periods of 2010, respectively, compared to $1.3 million and $2.2 million for the same periods in 2009. The continued elevated level of provision for loan losses in 2010 was driven primarily by the charge-off of several loans graded as substandard and an increase in level of reserve determined during management's review of the loan portfolio. The Company has recorded net charge-offs of $1.3 million and $2.9 million for the three- and six-month periods in 2010 compared to $587,000 and $1.3 million for the comparable periods in 2009 and $2.2 million in net charge-offs for all of 2009.
On May 10, 2010, the Company entered into a definitive agreement to acquire Atlantic BancGroup, Inc. and simultaneously agreed to issue $30 million in new capital to four private investors. The transactions are expected to close early in the fourth quarter, subject to regulatory approvals, and the two operations are expected to be fully integrated before year end. "The substantial fresh capital along with the enhanced footprint provided with the merger provides us with the ability to continue to implement our strategy to reduce our problem assets and improve our earnings performance," Mr. Pomar went on to say.
For the first six months of 2010, Jacksonville Bancorp reported a net loss of $2.0 million compared to a $505,000 net loss in the first six months of 2009. On a per share basis, the net loss was $1.13 for the six-month period compared to a net loss of $0.29 per share in 2009.
The Company's net interest margin increased from 2.97% to 3.27% when comparing the three months ending June 30, 2010 to the same period last year and from 2.92% to 3.33% for the comparable six-month periods. The increase is mainly the result of the Company taking advantage of the lowest funding sources and focusing on core deposit gathering initiatives.
Noninterest income was $286,000 and $534,000 for the three- and six-month periods in 2010, respectively, compared to $224,000 and $370,000 for the comparable periods in 2009. The increase in the quarterly income was primarily the result of income earned on the underlying assets within the Bank's BOLI policy. In 2009, a $132,000 write-off in the stock of Silverton Bank, N.A. was recognized due to its May 2009 failure and was offset by a loan referral fee in the amount of $52,000.
Noninterest expense increased to $3.4 million and $6.5 million for the three- and six-month periods in 2010, respectively, from $2.7 million and $5.0 million for the same periods in 2009. The increase of $776,000 for the linked quarter is attributable to recording $353,000 for merger-related expenses, and $342,000 for OREO write down and other OREO expenses. In 2009, a $216,000 regulatory "special assessment" was charged to all institutions as part of the FDIC's restoration plan to rebuild the Deposit Insurance Fund.
Total deposits increased $21.1 million, or 5.7%, from $370.6 million at December 31, 2009 to $391.7 million at June 30, 2010, primarily driven by a $22.5 million increase in money market, NOW and savings deposits. Federal Home Loan Bank advances decreased by $5.0 million to $20.0 million due to the maturity of a fixed rate advance.
Jacksonville Bancorp, Inc., a bank holding company, is the parent of The Jacksonville Bank, a Florida state-chartered bank focusing on the Northeast Florida market. The Jacksonville Bank opened for business on May 28, 1999 and provides a variety of community banking services to businesses and individuals through its five full-service banking offices in Jacksonville, Florida. More information is available at its website at www.jaxbank.com.
The statements contained in this press release, other than historical information, are forward-looking statements, which involve risks, assumptions and uncertainties. The risks, uncertainties and factors affecting actual results include but are not limited to: economic and political conditions, especially in North Florida; competitive circumstances; bank regulation, legislation, accounting principles and monetary policies; the interest rate environment; success in minimizing credit risk and nonperforming assets; and technological changes. The Company's actual results may differ significantly from the results discussed in forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The Company does not undertake, and specifically disclaims, any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Additional information regarding risk factors can be found in the Company's filings with the Securities and Exchange Commission.
JACKSONVILLE BANCORP, INC. |
|||||||||||
(Unaudited) |
|||||||||||
(Dollars in thousands except per share data) |
|||||||||||
Three Months Ended |
|||||||||||
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|||||||
2010 |
2010 |
2009 |
2009 |
2009 |
|||||||
Earnings Summary |
|||||||||||
Total interest income |
$ 5,749 |
$ 5,795 |
$ 5,817 |
$ 6,081 |
$ 5,625 |
||||||
Total interest expense |
2,222 |
2,220 |
2,151 |
2,266 |
2,556 |
||||||
Net interest income |
3,527 |
3,575 |
3,666 |
3,815 |
3,069 |
||||||
Provision for loan losses |
1,920 |
2,375 |
1,046 |
1,070 |
1,307 |
||||||
Net interest income after provision for loan losses |
1,607 |
1,200 |
2,620 |
2,745 |
1,762 |
||||||
Noninterest income |
286 |
248 |
230 |
241 |
224 |
||||||
Noninterest expense |
3,443 |
3,086 |
2,502 |
2,528 |
2,667 |
||||||
Income before income tax |
(1,550) |
(1,638) |
348 |
458 |
(681) |
||||||
Income tax provision |
(558) |
(650) |
92 |
133 |
(285) |
||||||
Net income |
$ (992) |
$ (988) |
$ 256 |
$ 325 |
$ (396) |
||||||
Summary Average Balance Sheet |
|||||||||||
Loans, gross |
$ 387,961 |
$ 391,073 |
$ 392,219 |
$ 395,133 |
$ 387,232 |
||||||
Securities |
27,327 |
25,340 |
26,033 |
26,083 |
26,321 |
||||||
Other earning assets |
17,384 |
10,037 |
941 |
525 |
687 |
||||||
Total earning assets |
432,672 |
426,450 |
419,193 |
421,741 |
414,240 |
||||||
Other assets |
20,656 |
21,416 |
19,669 |
16,127 |
16,039 |
||||||
Total assets |
$ 453,328 |
$ 447,866 |
$ 438,862 |
$ 437,868 |
$ 430,279 |
||||||
Interest bearing liabilities |
$ 384,776 |
$ 377,395 |
$ 364,871 |
$ 368,071 |
$ 362,346 |
||||||
Other liabilities |
42,380 |
43,105 |
46,919 |
42,968 |
40,894 |
||||||
Shareholders' equity |
26,172 |
27,366 |
27,072 |
26,829 |
27,039 |
||||||
Total liabilities and shareholders' equity |
$ 453,328 |
$ 447,866 |
$ 438,862 |
$ 437,868 |
$ 430,279 |
||||||
Per Share Data |
|||||||||||
Basic earnings per share |
$ (0.57) |
$ (0.56) |
$ 0.15 |
$ 0.19 |
$ (0.23) |
||||||
Diluted earnings per share |
$ (0.57) |
$ (0.56) |
$ 0.15 |
$ 0.19 |
$ (0.23) |
||||||
Basic weighted average shares outstanding |
1,749,443 |
1,748,832 |
1,749,280 |
1,748,586 |
1,748,214 |
||||||
Diluted weighted average shares outstanding |
1,749,443 |
1,748,832 |
1,750,112 |
1,749,074 |
1,748,214 |
||||||
Book value per basic share at end of period |
$ 14.30 |
$ 14.98 |
$ 15.59 |
$ 15.42 |
$ 15.13 |
||||||
Total shares outstanding at end of period |
1,750,437 |
1,749,526 |
1,749,243 |
1,748,854 |
1,747,599 |
||||||
Closing market price per share |
$ 10.90 |
$ 10.00 |
$ 9.49 |
$ 10.75 |
$ 10.50 |
||||||
Selected Ratios |
|||||||||||
Return on average assets |
-0.88% |
-0.89% |
0.23% |
0.29% |
-0.37% |
||||||
Return on average equity . |
-15.20% |
-14.64% |
3.75% |
4.81% |
-5.87% |
||||||
Average equity to average assets |
5.77% |
6.11% |
6.17% |
6.13% |
6.28% |
||||||
Tangible common equity to tangible assets |
5.54% |
5.79% |
6.21% |
6.13% |
6.04% |
||||||
Interest rate spread |
3.00% |
3.12% |
3.17% |
3.28% |
2.62% |
||||||
Net interest margin |
3.27% |
3.40% |
3.47% |
3.59% |
2.97% |
||||||
Allowance for loan losses as a percentage of total loans |
2.16% |
1.95% |
1.75% |
1.63% |
1.45% |
||||||
Allowance for loan losses as a percentage of NPL's |
128.17% |
102.90% |
78.38% |
108.49% |
38.89% |
||||||
Ratio of net charge-offs as a percentage of average loans |
1.33% |
1.67% |
0.66% |
0.28% |
0.61% |
||||||
Efficiency Ratio |
90.30% |
80.72% |
64.22% |
62.33% |
80.99% |
||||||
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|||||||
Summary Balance Sheet |
2010 |
2010 |
2009 |
2009 |
2009 |
||||||
Cash and cash equivalents |
$ 23,131 |
$ 19,217 |
$ 5,647 |
$ 5,496 |
$ 9,345 |
||||||
Securities |
28,648 |
26,513 |
25,371 |
26,955 |
25,571 |
||||||
Loans, net |
373,885 |
382,983 |
384,133 |
389,082 |
384,817 |
||||||
All other assets |
26,564 |
23,662 |
23,660 |
18,410 |
17,725 |
||||||
Total assets |
$ 452,228 |
$ 452,375 |
$ 438,811 |
$ 439,943 |
$ 437,458 |
||||||
Deposit accounts |
$ 391,698 |
$ 385,944 |
$ 370,635 |
$ 321,603 |
$ 321,864 |
||||||
All other liabilities |
35,499 |
40,220 |
40,908 |
91,380 |
89,161 |
||||||
Shareholders' equity |
25,031 |
26,211 |
27,268 |
26,960 |
26,433 |
||||||
Total liabilities and shareholders' equity |
$ 452,228 |
$ 452,375 |
$ 438,811 |
$ 439,943 |
$ 437,458 |
||||||
JACKSONVILLE BANCORP, INC. |
|||||
(Unaudited) |
|||||
(Dollars in thousands except per share data) |
|||||
Six Months Ended |
|||||
June 30, |
June 30, |
||||
2010 |
2009 |
||||
Earnings Summary |
|||||
Total interest income |
$ 11,544 |
$ 11,306 |
|||
Total interest expense |
4,442 |
5,312 |
|||
Net interest income |
7,102 |
5,994 |
|||
Provision for loan losses |
4,295 |
2,245 |
|||
Net interest income after provision for loan losses |
2,807 |
3,749 |
|||
Noninterest income |
534 |
370 |
|||
Noninterest expense |
6,529 |
4,953 |
|||
Income before income tax |
(3,188) |
(834) |
|||
Income tax provision |
(1,208) |
(329) |
|||
Net income |
$ (1,980) |
$ (505) |
|||
Summary Average Balance Sheet |
|||||
Loans, gross |
$ 389,508 |
$ 384,666 |
|||
Securities |
26,339 |
28,321 |
|||
Other earning assets |
13,731 |
691 |
|||
Total earning assets |
429,578 |
413,678 |
|||
Other assets |
21,034 |
16,430 |
|||
Total assets |
$ 450,612 |
$ 430,108 |
|||
Interest bearing liabilities |
$ 381,105 |
$ 361,102 |
|||
Other liabilities |
42,741 |
41,935 |
|||
Shareholders' equity |
26,766 |
27,071 |
|||
Total liabilities and shareholders' equity |
$ 450,612 |
$ 430,108 |
|||
Per Share Data |
|||||
Basic earnings per share |
$ (1.13) |
$ (0.29) |
|||
Diluted earnings per share |
$ (1.13) |
$ (0.29) |
|||
Basic weighted average shares outstanding |
1,749,140 |
1,748,429 |
|||
Diluted weighted average shares outstanding |
1,749,140 |
1,748,429 |
|||
Book value per basic share at end of period |
$ 14.30 |
$ 15.11 |
|||
Total shares outstanding at end of period |
1,750,437 |
1,748,799 |
|||
Closing market price per share |
$ 10.90 |
$ 10.50 |
|||
Selected Ratios |
|||||
Return on average assets |
-0.89% |
-0.24% |
|||
Return on average equity |
-14.92% |
-3.74% |
|||
Average equity to average assets |
5.94% |
6.29% |
|||
Tangible common equity to tangible assets |
5.54% |
6.04% |
|||
Interest rate spread |
3.07% |
2.54% |
|||
Net interest margin |
3.33% |
2.92% |
|||
Allowance for loan losses as a percentage of total loans |
2.16% |
1.45% |
|||
Allowance for loan losses as a percentage of NPL's |
128.17% |
38.89% |
|||
Ratio of net charge offs as a percentage of average loans |
1.50% |
0.67% |
|||
Efficiency Ratio |
85.50% |
77.83% |
|||
June 30, |
June 30, |
||||
Summary Balance Sheet |
2010 |
2009 |
|||
Cash and cash equivalents |
$ 23,131 |
$ 9,345 |
|||
Securities |
28,648 |
25,571 |
|||
Loans, net |
373,885 |
384,817 |
|||
All other assets |
26,564 |
17,725 |
|||
Total assets |
$ 452,228 |
$ 437,458 |
|||
Deposit accounts |
$ 391,698 |
$ 321,864 |
|||
All other liabilities |
35,499 |
89,161 |
|||
Shareholders' equity |
25,031 |
26,433 |
|||
Total liabilities and shareholders' equity |
$ 452,228 |
$ 437,458 |
|||
SOURCE Jacksonville Bancorp, Inc.
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